Summary
Marriott International, Inc. (MAR) announced on June 14, 2006, the successful closing of a debt offering. The company issued $350 million in aggregate principal amount of 6.200% Series H Notes due 2016. This offering, which commenced with a Terms Agreement on June 9, 2006, generated net proceeds of approximately $346.8 million after accounting for underwriting discounts and estimated offering expenses. Investors should note that these proceeds are designated for general corporate purposes. This includes funding working capital, capital expenditures, potential acquisitions, stock repurchases, and the repayment of existing commercial paper borrowings. The Notes will pay interest semi-annually on June 15 and December 15, with the first payment due December 15, 2006, and will mature on June 15, 2016. This debt issuance provides Marriott with flexibility for future growth and operational needs.
Key Highlights
- 1Marriott International, Inc. successfully closed a debt offering of $350 million in 6.200% Series H Notes due 2016.
- 2The offering generated net proceeds of approximately $346.8 million.
- 3Proceeds are intended for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchases, and repayment of commercial paper.
- 4The Notes carry a fixed interest rate of 6.200% per annum.
- 5Interest payments will be made semi-annually on June 15 and December 15, starting December 15, 2006.
- 6The Notes mature on June 15, 2016.
- 7The offering was facilitated through a Terms Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc., among other underwriters.